I came up with that for "This Week In Rich People", as many of my diaries have been about 1%'ers.
I was reading another great diary on the rec list discussing Romney's being 4th worst at "Job Creation" while Governor. At first I thought, hm, Bain is in Mass, all of Bains people are for the most part Harvard MBA's. I wonder if they own any interests that could have been affected by his decisions. As it is a fallacy to say he is no longer involved. He still is paid by them and has opportunities to profit with them in an extremely unique and beneficial arrangement.
But before I got to there (List of Bain's investments is here http://www.baincapitalprivateequity.com/... , did not look into Mass Connections during his term). I found something interesting about one company they own.
Apparently Bain paid 12 million dollars to a company called EDGAR. For those of you who are not in Private Equity or trade stocks often,
"EDGAR, the Electronic Data-Gathering, Analysis, and Retrieval system, performs automated collection, validation, indexing, acceptance, and forwarding of submissions by companies and others who are required by law to file forms with the U.S. Securities and Exchange Commission (the "SEC"). The database is freely available to the public via the Internet (Web or FTP)." (Source)
Essentially, if you go to even Google Finance to look at a Company's SEC filings, you are directed to Edgar. Even the SEC directs you there.
What is disturbing and I wonder if pointed out, is that Bain also bought (with the 12 million) 2 seats on the board.
Translation- Bain has the opportunity to see virtually any Company's filings before anyone else.
If they traded on that basis that could be insider trading. I wonder then if they have avoided a huge loss at any time right around the time a company filed. If so, you aren't in questionable character mode, you are in Martha Stewart/Michael Milken/Wall Street (the Movie x 1 million) criminal area. I think it is a fair question to ask or look into especially as this is a company that makes money off of other companies. Who now have an advantage of possibly seeing those reports before anyone else.
If you wonder if this is insider trading. It would be. (Ie if they used their EDGAR connection to trade to someone's disadvantage).
"The SEC adopted new Rules 10b5-1 and 10b5-2 to resolve two insider trading issues where the courts have disagreed. Rule 10b5-1 provides that a person trades on the basis of material nonpublic information if a trader is "aware" of the material nonpublic information when making the purchase or sale. The rule also sets forth several affirmative defenses or exceptions to liability. The rule permits persons to trade in certain specified circumstances where it is clear that the information they are aware of is not a factor in the decision to trade, such as pursuant to a pre-existing plan, contract, or instruction that was made in good faith.
Rule 10b5-2 clarifies how the misappropriation theory applies to certain non-business relationships. This rule provides that a person receiving confidential information under circumstances specified in the rule would owe a duty of trust or confidence and thus could be liable under the misappropriation theory." (SEC.gov)
I don't have time to look into. But I know there are plenty of gum-shoes out there that might, and when you add us up, we've seen what can happen.
I have no idea if this has been noted, I only do because I do trade and use edgar to review filings (after posted).